Identify the correct sequence to be followed while preparing of final account of a partnership firm:
(A) Profit and Loss Appropriation Account
(B) Profit and Loss Account
(C) Trading Account
(D) Balance Sheet
Choose the correct answer from the options give below:

Correct option is A

The correct sequence is:
(C) Trading Account to determine gross profit or loss: The Trading Account calculates the gross profit or loss by comparing sales and the cost of goods sold.
(B) Profit and Loss Account to determine net profit or loss: The Profit and Loss Account determines the net profit or loss by accounting for all operating expenses and revenues.
(A) Profit and Loss Appropriation Account to distribute the profit: The Profit and Loss Appropriation Account allocates the net profit among dividends, reserves, and retained earnings.
(D) Balance Sheet to show the financial position: The Balance Sheet provides a snapshot of the company's financial position by listing its assets, liabilities, and equity.